SEBI orders immediate closure of Rs 50,000 cr investment scheme

SEBI orders immediate closure of Rs 50,000 cr investment scheme

IN ITS biggest-ever crackdown on a large-scale illicit money pooling scheme estimated at nearly Rs 50.000 crore. regulator SEBI on Friday ordered immediate closure of unauthorised collective investment schemes run by PACL Ltd and refund of investors' money within three months. Besides, the capital markets regulator also said it was initiating further proceedings against the company and its nine promoters and directors for fraudulent and unfair trade practices, as also for violation of SEBI's CIS Regulations, among others, as per a direction from the Supreme Court. As per SEBI's 92-page order, the total amount mobilised by the company, "by its own admission" comes to a whopping Rs 49. UK) crore and "this figure could have been even more if PACL would have provided the details of the funds mobilised during the period of April 1. 2012 lo February 25. 2013".

The number of customers through which the money could have been collected is estimated at around 5.85 crore. which includes the customers who said lo have been allotted land and who are yet to be allotted the land. SEBI said.

This is the biggest ever amount, as also the largest number of investors, so far involved in acase found to be unauthorised'collective investment scheme' by the regulator SEBI.

Among others. PACL and its top executives, including Nirmal Singh Bhangoo. are being probed by CBI as well. Besides, this is also one of the longest-running cases under ihe scanner of SEBI. which had first intimated PACL more

Posted in: News 2014